Vanguard Plans to Set Up Active Bond ETF

In a move that could be an important step for a new type of exchange-traded fund, indexing giant Vanguard Group Inc. plans an actively managed bond ETF.

While there is at least one other proposal for an active bond ETF before the Securities and Exchange Commission, the move is significant because of Vanguard's large presence in the ETF industry -- it is the third-largest player by assets -- and because of its reputation as a champion...